RBI may now be more open for credit card licences to NBFCs: Report

RBI might be more open to granting licenses to various large players and non-banks like Bajaj Finance thereby increasing competition in the segment, said Macquarie Research in a note.

In its master direction, the RBI said, “The co-branding partner shall not have access to information relating to transactions undertaken through the co-branded card”.

“The role of the co-branding partner entity under the tie-up arrangement shall be limited to marketing/distribution of the cards and providing access to the cardholder for the goods/services that are offered,” the RBI further said.

RBI also made it clear that NBFCs will have to take prior approval from the RBI for issuing credit cards to their customers.

Banks tie up with various entities, including non-banks, e-commerce companies, food delivery apps, airline companies, and others, to issue co-branded credit cards.